How To Read Company Income Statement

The income statement assesses the financial performance by providing a summary of the revenues and expenses of the company through both operating and non operational activities.

How to read company income statement. An income statement is part of the financial statement that shows the company s financial performance over a specific accounting period. The income statement also known as the profit and loss p l statement is the financial statement that depicts the revenues expenses and net income generated by an organization over a specific. This example financial report is designed for you to read from the top line sales revenue and proceed down to the bottom line net income. A total of 560 million in selling and operating expenses and 293 million in general and administrative expenses were subtracted from that.

The second is that an income statement is based on a few very simple concepts which you already understand. Income statement also known as a profit or loss statement p l is one of the major financial statements that shows all revenues and expenses of a business and how much profit or loss a company has made over a given time period. Learn how to read income statements and you ll unlock the ability to understand your finances. The basic suite of financial statements a company produces at least annually consists of the statement of cash flows the balance sheet or statement of financial position and the income statement.

Here s how an income statement is usually. Each step down the ladder in an income statement involves the deduction of an expense. This income statement shows that the company brought in a total of 4 358 billion through sales and it cost approximately 2 738 billion to achieve those sales for a gross profit of 1 619 billion.